Fabrinet (FN) Stock Sinks As Market Gains: What You Should Know
Fabrinet (FN) closed at $128.86 in the latest trading session, marking a -0.79% move from the prior day. This move lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.14%.
Investors will be hoping for strength from Fabrinet as it approaches its next earnings release. On that day, Fabrinet is projected to report earnings of $1.88 per share, which would represent year-over-year growth of 11.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $641.88 million, up 9.19% from the year-ago period.
Any recent changes to analyst estimates for Fabrinet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Fabrinet currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Fabrinet is currently trading at a Forward P/E ratio of 17.06. Its industry sports an average Forward P/E of 19.33, so we one might conclude that Fabrinet is trading at a discount comparatively.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FN in the coming trading sessions, be sure to utilize Zacks.com.
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Fabrinet (FN) : Free Stock Analysis Report
